===== PDF PAGE 42 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO INFRASTRUCTURE COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDA ITEM NUMBER: ______7.D_______ Resolution No. 26-R-0063 – Contract Award – John Neri Construction Company, Inc. – York Avenue Area Watermain COMMITTEE AGENDA DATE: Aug 6, 2026 COUNCIL AGENDA DATE: Aug 17, 2026and Streets Rehabilitation Project in an Amount Not to Exceed $3,597,342.90 STAFF REVIEW: Mehul T. Patel, P.E., CFM, Director of Public Works SIGNATURE__________________________ APPROVED BY CITY ADMINISTRATOR: Viviana Ramirez SIGNATURE________________________ ITEM SUMMARY: In April 2025, the City was awarded Community Development Block Grant (CDBG) funding from DuPage County for the York Avenue Area Watermain and Streets Rehabilitation Project (Project) in the amount not to exceed $600,000.00. Subsequently, the City entered into an Intergovernmental Agreement (IGA) with DuPage County on March 3, 2026, for acceptance of grant funds for the Project. The IGA requires the City to complete the Project and expend the full CDBG funding amount by February 26, 2027. The Project limits are on York Avenue between the dead end and Oakwood Avenue, Garden Street between Washington Street and Grand Lake Boulevard, and Ingalton Avenue between Washington Street and Grand Lake Boulevard, as denoted in the enclosed location map. The net length of roadway improvements is approximately 5,708 feet or 1.08 miles. The scope of the Project includes the installation of a new 8” ductile iron water main and the associated appurtenances, approximately 90 lead water service line replacements, pavement milling, hot-mix asphalt (HMA) surface course installation, spot Portland Cement Concrete (PCC) curb and gutter removal and replacement, mid-block PCC sidewalk removal and replacement, ADA sidewalk curb ramp, parkway restoration, manhole structure repair and adjustments, thermoplastic pavement markings, and miscellaneous work necessary to complete the Project. The initial request for bids was advertised in the Daily Herald and on an online bidding platform QuestCDN on April 7, 2026. Staff opened bids on April 28, 2026. Due to bids being significantly over budget, all bids were rejected by the City Council on May 18, 2026. Furthermore, staff discussed the project with the DuPage County Community Development Commission to determine if there are mechanisms in place to request additional grant funds or to reduce the Project scope to better align the Project with the approved FY 2026 budget. The request for additional grant funding would require re-application and evaluation which would delay the Project by an additional two years, pending County Board approval. The County and staff mutually agreed on the reduction of the scope to keep the Project on schedule. Proposed changes in Project scope will require an amendment to the IGA, including a necessary time extension to complete and close out the Project in FY 2027. The scope change and the amendment to the IGA must be approved by the County Board before the City can award the Project, which is expected on August 11, 2026. The County must also approve the apparent low bidder, which is also expected on or before August 11, 2026. The County Board is expected to consider the amendment to the IGA and approval of the apparent low bidder on August 11, 2026. Staff anticipates those approvals will be obtained prior to City Council consideration on August 17, 2026. The Project scope was reduced in concurrence with DuPage County, and the grant agreement was modified before re-advertising in the Daily Herald and on an online bidding platform QuestCDN on July 7, 2026. Staff opened bids on July 28, 2026 and the results of the bid opening are listed below. ===== PDF PAGE 43 ===== [Extraction: embedded PDF text] CITY OF WEST CHICAGO BASE BID RANK CONTRACTOR SUBMITTAL (BASE BID) AMOUNT John Neri Construction Company $3,597,342.90 1 H. Linden & Sons Sewer & Water $3,650,502.59 2 J. Congdon Sewer Service, Inc. $3,789,188.52 3 C. Szabo Contracting, Inc. $3,847,325.00 4 Performance Construction & Engineering $3,858,000.00 5 Swallow Construction Co. $3,999,999.99 6 Trine Construction Corp. $4,284,529.91 7 ENGINEER’S ESTIMATE $3,884,161.61 N/A The FY 2026 budget includes $1,706,500.00 under the Capital Projects Fund Account No. 08-34-53-4807, $1,409,200.00 under the Water Fund Account No. 06-34-47-4806, and $50,000.00 under the Sewer Fund Account No. 05-34-43-4806, for a total of $3,165,700.00 for the construction of the Project. The responsible low bidder, John Neri Construction Company’s bid amount of $3,597,342.90 was $431,642.90 or approximately 13.63% over the budget amount of $3,165,700.00. Staff believes that the increases in fuel cost, material costs, industry workload and more than expected lead service lines within Project limits are the biggest factors for inflated bids. The Project is designed to have a winter shutdown and complete construction in 2027. As such, the budget shortage of $431,642.90 will be appropriately budgeted in the FY 2027. The CDBG agreement for this Project expires on February 26, 2027, and an extension will be required to complete the construction. Staff have attempted to extend the expiration; however, the County has suggested that Project construction must be progressing to consider an extension. Staff anticipates the extension will be granted. Staff recommends approval of the award. ACTIONS PROPOSED: Approve Resolution No. 26-R-0063 authorizing the Mayor to execute a contract with John Neri Construction Company, Inc. of Addison, Illinois for the York Avenue Area Watermain and Streets Rehabilitation Project in an Amount Not to Exceed $3,597,342.90 COMMITTEE RECOMMENDATION: The Infrastructure Committee voted 6-0 for approval.